Views

Seattle: Tech industry diversity is its strength

A variety of industries call the Puget Sound region home.
March 08, 2018
why the tech industry is focusing on diversity

Market overview

A diversified base of high-tech companies ranging from software to biotechnology, manufacturing and aerospace technology continues to drive the market. In the past 12 months, nearly 40 percent of the jobs added in the Seattle metro division were in office-occupying sectors, such as professional services, information and government.

There are currently more than 9.2 million square feet of active tenant requirements throughout the Seattle-Bellevue region. This demand has led to significant development, with 2017 finishing as the most active year for office deliveries since 2000.

One of the major challenges in Seattle is creating the inventory to satisfy demand. In the Seattle CBD, many owners have actively begun addressing this issue by spending significant capital improving their building lobbies and amenities to turn seemingly outdated product into hip, tech-friendly space.

Numbers to watch

  • +2.3% - 1 year (%) tech market growth
  • +22.0% - 5 year (%) tech market growth
  • $36.28 - Average office cost per s.f. annually

Notable deals (2017)

1. 3003 160th Ave. SE

  • Submarket: I-90 Corridor
  • Size: 601,081 s.f.
  • Type: Renewal

2. 811 5th Ave.

  • Submarket: Seattle CBD
  • Size: 515,518 s.f.
  • Type: New

3. 1301 2nd Ave.

  • Submarket: Seattle CBD
  • Size: 173,460 s.f.
  • Type: Sublease

Like what you read?

Subscribe